Who is responsible for covering the travel, living, and other expenses incurred by the franchisee's employees while attending the Carls Franchise Management Training Program (FMTP)?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall pay CJR, for each person attending the FMTP, a tuition fee as established by CJR from time to time. Franchisee will be required to pay all travel, living and other expenses incurred by Franchisee's employees while attending the training. CJR reserves the right to dismiss from the training program any person whom CJR does not believe will perform acceptably in the position for which he has been hired by Franchisee and Franchisee shall provide a suitable replacement within one month of such dismissal.
B. Other Training
Promptly after the Opening Date, Franchisee shall enter into the Star University License Agreement with CJR, in the form attached as Appendix I. If CJR elects to change the training provider during the Term or Renewal Term of this Agreement, Franchisee agrees to promptly enter into a replacement license agreement with the new training provider. CJR shall have the right (which may be exercised at any time and in CJR's sole discretion) to require that Franchisee, Franchisee's owners, the Operating Principal, the General Manager and any other employees hired by Franchisee to fill certain designated positions take and successfully complete other training courses in addition to the FMTP. CJR reserves the right to require Franchisee to pay a tuition fee for these additional training programs as established by CJR from time to time. Franchisee will be required to pay all travel, living and other expenses incurred by Franchisee's employees while attending the training.
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the franchisee is responsible for covering the expenses incurred by their employees while attending the Franchise Management Training Program (FMTP). Specifically, the franchisee must pay for all travel, living, and other related costs for each employee attending the FMTP.
This means that a prospective Carls franchisee needs to factor in these training-related expenses when budgeting for the initial setup and ongoing operational costs of the franchise. The number of employees required to attend the FMTP, including the General Manager and a minimum of six Shift Leaders, will directly impact the total training expenses. These costs are in addition to the tuition fees that the franchisee must also pay to Carls for each person attending the FMTP.
Carls also reserves the right to require additional training courses beyond the FMTP, and the franchisee is similarly responsible for the travel, living, and other expenses associated with these additional training programs. This could potentially add to the financial burden on the franchisee, especially if Carls changes the training provider during the term of the agreement, necessitating new training arrangements. Therefore, franchisees should clarify the scope and frequency of required training programs to accurately estimate these costs.
In summary, the franchisee bears the full financial responsibility for their employees' participation in required training programs, including tuition fees and all associated travel and living expenses. This is a standard practice in many franchise systems, where the franchisee is considered an independent business owner responsible for their own personnel costs.